In the event of the buildings being damaged so as to constitute total loss or constructive total loss and, (as a result of the exercise of statutory powers and/or authority by any Government Department, Local Government or any other Statutory Authority), reinstatement of the building as before is prohibited and reinstatement is only permissible subject to a reduced Floor Space Ratio Index.

The Insurer(s) agree(s) to pay in addition to the amount payable on reinstatement of such building(s).

1) The difference between

(a) the actual cost of reinstatement incurred in accordance with the reduced Floor Space Ratio Index; and

(b) the cost of reinstatement which would have been incurred had a reduced Floor Space Ratio Index not been applicable.

2) Any fee, contribution or other impost payable to any Government, Local Government or other Statutory Authority where such fee, contribution or impost is a condition precedent to the obtaining of consent to reinstate the said building.

In arriving at the amount payable under 1(a) and (b) above any payments made by the Insurer(s) shall include the extra cost of reinstatement including demolition or dismantling of the Property Insured necessarily incurred to comply with the requirements of any Act of Parliament or Regulation made thereunder or any By-Law or Regulation of any Municipal or other Statutory Authority.

Payments made under this Memorandum shall be subject to the following provisions:

(i) Any payment made for the difference between 1(a) and (b) of this clause shall be made as soon as the said difference is ascertained upon completion of the rebuilding works being certified by the architect acting on behalf of the Insured in the reinstatement of the building.

(ii) Any payment made under Section 2 of this clause shall be in accordance with the fee, contribution or impost payable to the said Government, Local Government or other Statutory Authority pursuant to consent to reinstate the said building.

(iii) The total amount recoverable under the Policy in respect of any one loss or series of losses arising out of one occurrence shall not exceed the Limit of Liability.

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